No end of PSUs losses in JK

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By Fast Kashmir on 27/01/2018.

No end of PSUs losses in JK
Most fail to pay salaries to employees

Srinagar, Jan 27 : There seems no end of public sector undertaking losses in Jammu and Kashmir with mostly of them even failing to pay salaries to employees.
There are 19 public sector undertakings in the state under the administrative control of various departments. Most have become a burden on the state exchequer.

According to official figures available with KNS, seven PSUs are being provided budgetary support by the state government to meet their wage bills as they failed to pay salaries to employees.
J&K State Handloom Development Corporation was established in 1981 to assist handloom weavers’ societies and SSI units in the handloom sector.
However, it has been continuously running into losses.

During 2013-2014, the Corporation witnessed around Rs 9 crore losses while the loss level increased to Rs 14 crore during 2016-2017. In the current fiscal, it faced around Rs 3.6 crore in the first seven months.

The State Road Transport Corporation is also running into losses, which has become a liability on the state government. It has suffered over Rs 150 crore losses over the years and its most assets are lying defunct for the last five years.

Official figures reveal that SRTC has earned revenue of Rs. 98.29 crore during the year 2016-17 and Rs. 41.82 in the current fiscal so far. “The revenue part is continuously declining and even not able to pay salaries to employees,” an official said.

The Corporation had around 2000 vehicles including buses and trucks in 1900s whose number has reduced to around 1500.

Jammu and Kashmir State Industrial Development Corporation Ltd (SIDCO) used to provide term loan assistance to industrial units under refinance
scheme of IDBI, SIDBI. “However, most of the units went into default. An amount of Rs.12.90 crore on account of principal is recoverable from 23 units, besides interest of Rs. 377.05 crore,” the figures reveal.

Jammu and Kashmir Minerals Limited was incorporated in 1960 as the first public sector undertaking of the state. Since than, the corporation according to official figures had been incurring losses.
JK Cements Limited has also suffered heavy losses over the years. The JKCL was set up three-decades-ago of producing quality cements at the reasonable prices and generating revenue for the state. However, it production has gone down over the years and its employees are often protesting against non-releasing of salaries.

JK Forest Corporation, JK Industries Limited, JKWDC, J&K Horticulture Produce Marketing and Processing Corporation Limited, J&K Minerals are also running in losses worth crores of rupees.

Sources said several PSUs have failed to pay salaries to their employees, who would often come to the streets, seeking releasing of their remunerations.
“They have suffered heavy losses due to mismanagement by authorities,” an official of the Industries and Commerce Department, said.

He said that state government has signed an MOU with the Centre government to gradually phase out the budgetary support.

Presently, seven PSUs are managed and controlled by Industries and Commerce Department. (KNS)